CHESHIRE'S council tax rise can be kept low and under-threat services saved due to extra Government cash, said the county's Labour leader.

Derek Bateman was speaking after the Chancellor announced an additional £3.9m for Cheshire in his Pre-Budget Report.

He said: 'This extra cash will en-sure Cheshire meets its pledge of a low council tax rise and is also enough to cancel out the threat from the administration to cut services.

'There are currently proposals to axe vital bus services - including all evening services in many areas -and to dramatically increase social services charges and reduce the eligibility of clients to receive them.

'Now those drastic measures, which would affect many of Cheshire's most vulnerable residents, are no longer necessary.

'The Government has indeed handed Cheshire taxpayers an early Christmas present.'

The cash is part of a £340m package for English authorities in 2004/05.

Cllr Bateman added: 'This unringfenced funding further demonstrates the Government's commitment to investment in public services.

'It comes on top of the £420m promised by John Prescott for local government - bringing this year's total extra grant to £760m.

'Indeed, Labour has increased funding for local Government by 30% in real terms since 1997 - this compares with a 7% real terms' cut under the last four years of the

Tories.' But Cheshire's Tory finance chief Gretta Cousins said the extra Government money was 'far from the answer to local government cash-flow problems.'

She pointed out: 'While it is welcome it certainly will not bridge the gap between grant aid and the cash needed to cover growth and service demands.

'We believe the extra cash is the Government response to warnings from the Local Government Association estimating local authorities needed an £800m a year simply to meet service demands.

'It is also the reaction of a government scared to death by the prospect of a revolt by the silent majority against spiralling council tax increases.'

Cllr Cousins added: 'I would re-mind our council tax payers during the last two years Cheshire has recorded the lowest council tax rise of any shire county - despite being one of the worst centrally funded shires in the country.

'We shall be looking at the situation very closely - mindful of the competing needs of those service demands and also to meet our pledge on council tax.'